Pursue regional expansion - Local businesses urged
Players in the banking industry have challenged businesses in the country, especially financial institutions and manufacturers, to look beyond Ghana for investment opportunities and expansion.
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Such a move, they said would help the businesses to grow and expand into the international market rather than compete within the local market place.
Speaking in Accra at the ‘Databank Investment Summit 2016’, the Managing Director of GTBank Ghana, Mr Lekan Sanusi, the Managing Partner for Databank Private Equity Limited, Mr Brain Frimpong, the Chief Executive Officer (CEO), of Petra Trust, Mr Kofi Fynn and the Group Treasurer of IZWE loans (South Africa), Eugene du Plessis, underscored the need for companies to push more for opportunities outside the country.
“The growing number of enterprises and competition in the business arena meant that search for new and additional markets were key to the survival and expansion of individual companies,” Mr Sanusi noted.
He explained that regional expansion had become a trend across the continent as mergers and acquisitions were also on the rise.
He stated that in view of these recent trends, African businesses needed partners such as Databank that could provide them with specialised advisory services during such cross– border transactions.
Mr Frimpong, for his part, stated that with the exception of South Africa, most African pension funds did not embrace private equity opportunities.
He said while pension assets were increasing across the continent, regulatory policies had not supported allocations to private equity and venture capital.
“There is also the need for innovative funding models that encourage private investors’ contributions. Databank has the opportunity to become the intermediary in this space and facilitate project developments through project advisory, management and project funding,” Mr Frimpong added.
Investment opportunities
Mr Fynn said it was crucial for Ghanaians to take advantage of investment opportunities available to them locally in order to grow and expand.
He stressed the need for entrepreneurs and investors to take advantage of regulatory policies such as the pensions’ regulations and tax benefits that govern as well as promote the interest of companies in the investment industry.
Mr du Plessis commended Databank for efforts made to cast the spotlight on investment opportunities available in Africa and to establish an image of a business-ready continent.
He noted that frequent initiatives bringing together the most influential global leaders from industry, finance government and policy to identify and advance investment projects across the continent would go a long way to grow the market in Africa.